Meta’s Metaverse Arm Records $4.65 Billion Loss in Q4, Exceeds Analyst Forecasts

Meta reportedA fourth-quarter operating profit of $4.65 billion was recorded for its metaverse segment Reality Labs. This exceeded the $4.26 billion predicted by analysts.

Since 2020, the metaverse sector has suffered financial setbacks. The total loss is now over $42 billion. Meta anticipates a significant year-overyear increase in operating loss. They attribute this to sustained investment in AR/VR products innovation and ecosystem growth.

Reality Labs’ Q4 revenue was over $1 billion. This is a 37% improvement from the previous year’s corresponding period. Surprisingly, this quarterly revenue surpassed financial analysts’ projections of $768.2 million for Q4. 

Meta introduced the Quest 3 VR headset, solidifying Reality Labs’ position as a leader in advancing virtual and augmented reality technologies, contributing significantly to the metaverse — an idea championed by Mark Zuckerberg, Meta’s founder and CEO, as the next major development and the future of mobile internet.

Meta’s current strategic focus is on the Quest VR headsets. Apple’s debut headset, the, enters the metaverse as Meta intensifies its investment. Vision Pro, priced at $3,500 — noticeably more expensive than Meta’s Quest 3 VR headset, starting at $500. 

In 2023, the VR headsets and AR glasses market will be worth $ 1.2 billion. The number of people who are employed has decreased by almost 40%, reaching $664 millions by November 25. Circana Research suggests that this decline could be attributed to a lack of standalone VR headsets on the market.